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Friday, March 29, 2024

MPIC unable to raise stake in Makati hospital

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Conglomerate Metro Pacific Investments Corp. has failed to increase significantly its stake in Medical Doctors Inc., which owns and operates Makati Medical Center.

MPIC’s hospital unit Metro Pacific Hospitals Holdings Inc. said in a filing with the Philippine Competition Commission that only 17,636 MDI shares were tendered during the extended tender offering period. This will increase MPHHI’s stake in MDI only by just 0.52 percent from the current 33.3 percent.

MPHHI has offered to acquire up to 563,000 outstanding common shares, representing 16.6 percent interest in MDI. This would have increased MPHHI’ stake in MDI to 49.9 percent.

The PCC said it would take no further action on the planned transaction after the insignificant increase in MPIC’s stake.

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“The decision is rendered solely on the facts disclosed and the circumstanced of the proposed transaction and documents submitted by MPHHI and MDI,” the PCC said.

Should MPHHI pursue its intended acquisition of MDI’s shares through tender offer pursuant to the implementing rules and regulations of the Securities Regulation Code to increase its interest in MDI, the parties shall inform the Commission of any such transaction regardless of whether the same is notifiable under the PCA and its IRR,” the PCC added.

The tender offer was initially scheduled to end on July 26. The deadline was extended until Aug. 9 due to the low acceptance of shareholders.

MPHHI earlier announced plans to further expand the capacity of Makati Medical Center.

It was set to invest about P5 billion to P6 billion to build a new medical facility specializing in women’s health care.

MPHHI currently has 14 hospitals across the country, including Cardinal Santos Medical Center, Our Lady of Lourdes Hospital, Asian Hospital, De Los Santos Medical Center, Manila Doctors Hospital, Marikina Valley Medical Center Inc., and Dr. Jesus C. Delgado Memorial Hospital in Metro Manila.

The hospital group is also preparing to raise fresh capital either through an initial public offering or private placement from strategic investors.

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